Half of Every Mortgaged Home in America Still Completely Underwater-Fabian Calvo

Forget what you are hearing about stiffer mortgage lending requirements. It’s not true. Real estate expert Fabian Calvo says, “If you can fog up a mirror or you have a pulse, they will give you a home loan. That’s what they have done with the car loans, and that’s what they are doing with housing loans.” The so-called new rules do not have any down payment credit score requirement. Zero percent down loans are going to make a very big comeback. According to Calvo, “After the mid-term election, you’re going to see no-money-down loans just really roar back. It’s all part of the pump and dump I’ve been telling you about for well over a year.” So, are the housing market problems behind us? Calvo, whose company buys and sells $100 million in distressed real estate debt annually, says, “Bottom line is we are still in a situation where half of every mortgaged home in America is completely underwater, and the Fed is going to have to print money for a very long time before those values return. It’s just a matter of fact.” Calvo goes on to say, “Now, worst of all, they are beginning to securitize so they can bring in even more capital. A third of all real estate in America is rental properties. You are going to have Wall Street being the biggest landlord in America. It’s subprime 2.0.”

According to the Director of the Consumer Financial Bureau, Richard Cordray, new mortgage lending rules are supposed to make sure “the great mortgage meltdown never happens again.” So, is the housing market more resilient to another downturn? No way, says Calvo, “They’ve securitized the rental properties, which are now making the net effect of a collapse in values in the market much more devastating for the economy.” Calvo predicts, “The next leg down in the real estate market will be much, much larger . . . Homeowners, who may have a little bit of equity in their home, should be very cautious right now.” Still, Calvo says don’t expect a crash in 2014, and he says, “We’ll pretty much see a repeat of 2013.” Calvo says to watch when hedge funds start selling their real estate holdings. He says, “I think that will be around 2015. That will be the handwriting on the wall that the collapse in housing prices will be coming.” Calvo thinks the next real estate collapsewillbe caused by forces outside of the housing market. Calvo says, “I think the next leg down in the real estate market won’t be centered around the housing collapse. It will be centered around the multi-bubble collapse of the dollar, the bonds, the government debt, all collapsing simultaneously. . . . This next collapse will make 2008 look like a dress rehearsal for the really big multi-bubble collapse we will be seeing.”

So, how are the rich going to protect themselves? Calvo, who does business with millionaires and billion dollar hedge funds, says, “A year ago, a third of the room would say buying gold and silver was just kind of crazy. Today, you have half of the room investing much more than 10 or 15% of their portfolio into physical gold and silver. To me, that is a big signal.”

Is there any good news? Yes! Calvo says, “There’s going to be spectacular sales, spectacular deals, way more than you saw back in 2008.” Join Greg Hunter as he goes One-on-One with Fabian Calvo from TheNoteHouse.us.

About the Author

Greg Hunter

Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.

Comments

Jim01/15/2014 •

Viewing the run-up we have seen in agricultural land : I wonder if farmland will be similarly affected in a real estate reset? Farmers are paying big land rental payments to landlords now and the margins are tightening even maybe going negative on corn big time. Landlords are trying to get traditional 3-4% and more return on their land through the farmer. Anyone who sells stuff to farmers and landlords continue to hype the situation. Crop insurance is becoming mandatory because the numbers are so big in agriculture. Another finger in the pie of the man supplying the slave labor. Since before Christ food has been raised with slave labor. Even with college degrees and all the technology in many ways it still is today. Why else would we be replacing cow milking personnel with robots. At least 5 in my county in the last couple months. Looking for opinions,

Jim;
This is the END GAME, all I can suggest is, get used to it and, at this point it is every man for himself. Remember the obaminator, signed an executive order 2 st. patricks holidays ago, at night, which means HE, can comfiscate all farmland, trucking co. shipping, warehousing, food production, etc etc during a national crisis, like a FAKE FORGIEN EMP ATTACK, OR CIVIL UN-REST, like the jackass talked about. Soon the gang of 535 will come up with some black flag, to declare martial law, herd us into submission, due to collapse of currency, economic MELTDOWN, or sump-in.
They tried it in SYRIA, putin backed obama down, because obama is a cheap bully, until he meets the sec of defense of RUSSIA, OR CHINA, then he turns into the community service worker and hides in the WH……read below….

Reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that could boost Iranian oil exports, prompting harsh responses from Washington, which says such a deal could trigger new US sanctions.

So far, talks are progressing to the point that Russia could purchase up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods, according to Reuters.

“We are concerned about these reports and Secretary (of State John) Kerry directly expressed this concern with (Russian) Foreign Minister (Sergei) Lavrov… If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions,” Caitlin Hayden, spokeswoman for the White House National Security Council, told Reuters.

I completely disagree with the issue of farm labor being slaves; does the term “family farm” mean anything. For generations farms were manned by the family for the most point and seasonal workers. Seasonal workers did not mean uneducated workers necessarily either as some of the large orchards and even middle sized employed college students on the weekends back in the day.

The true farmer cares for his animals and labor and that is a fact. The corporate farmer on the other hand cares only about the bottom line. A true farmer cares about his livestock and would not use anything that would hurt them like rBGTH for instance that has some “interesting” effects according to some.

Corporate farming is NOT best for the general public IMO and I am fearful of loosing the non-corporate farms.

Dennis K. Formerly in Congress saw ET, too. He still lost the election.
Iran says they are not building nukes but that is BS, too. Sounds like the Canadian is a Global Warming nut that thinks if he involves aliens some one will believe in Global warming. Global warming pushers are trying to shut down debate because it can not stand scrutiny. It’s a laughable idea preached as fact by people looking to cash in.

In the end, it all comes reputation and integrity.
Bill Clinton didn’t have sex with that woman.
Obama said we could keep our insurance.
Joe Biden…He said passing Obama care is a “big [email protected](king deal”. Well, that was true but not in a positive way and maybe the only time he has told the truth.
As a matter of fact, I see aliens daily, but they are the illegal variety. If a race had the ability to warp time and space to get here, how long would it take to conquer earth? A few EMPs and we are back in the stone age.

So i have cash to buy a rental condo. I guess what i glean from your article is that the dollar is going to collapse so i better buy now before the dollar is worthless. Otherwise i better buy gold now and then buy when the market crashes. Is this a fair assessment?

Also when the economy crashes, i would imagine that people won’t be paying their rent — high eviction rate. Sounds like rental property will be a losing proposition?

Cindy,
This is decision only you can make. I will say that buying a rental condo exposes you to counter-party risk. (This should be considered as well.) What if many in this complex default and/or stop paying fees or rents? Be careful no matter what you do. If you have no gold or silver coins, you need some as a hedge in my opinion. (I am not an investment advisor.) Again, how much you can buy and hold as a core asset (even if the price goes down) is up to you and you alone.
Greg

Cindy, If I may say you have asked a question many people find themselves asking. I would advise a small amount of silver, maybe 30.00 in dimes. constitutional money. Get a small track of land 30 minutes min from the large city. Continue to rent close to work. With any leftover money pay the land off. Containers for water and a monolithic filter. 20 year storage food such as efooddirect. When you own a piece of land every thing else will fall in place. Silver will keep up with inflation just like gold will. It Is not about profit. It is about surviving threw troubled times.
Study the complaints about foods before you buy.http://youtu.be/c0hu6ZYPHZ0http://www.youtube.com/watch?v=KXPg3y2i_fM
Hope this helps .

Good advice but without knowing Cindy’s circumstance, it hard to know what to advise.
My only advice is no to the rental . When things get really bad, you are likely to lose your investment, either thru destruction or counter party risk or thru lose of income.

It is very important to put this column from HAARTZ in the context of the escalating tension between Obama and Netanyahu.
Please bear in mind that the Israeli’s “un official” speaker is linking Obama to Nazi. That is very serious, and if you add to it the recent insult to Kerry by the israeli’s official that he apologized for (but the damage was done anyway) I can say that they declared an unofficial war on this administration.
Obama does not want damn wars, he wants to finish his term with his peace legacy pulling US troops back home and cooling off the wars that BUSH ignited.
Netanyahu vowed he will not let him have peace and he will drag his A$$ with our kids lives on the line in wars that will save the Israeli’s kids, sacrificing ours for them!
In brief, i was laughed at when i said Netanyahu will kick the chess board, I see in 2014 one evidence after another that he will just do so!

Iran’s crazy mullah with nukes scares the bejesus out of me. Saudi and Israel are scared to put differences aside to Iran from going nuclear.
As far as Obama’s peace legacy…what a riot! He announced his surrender in advance. That’s a great strategy. Obama’s legacy is going to be how he destroyed America. In the future, his name will be a curse. His legacy will be crafted by facts as the media will not be able to continue their deception.

Hahaha
And you guys buy into this? Just one question, how did we beat alien tech in WWII?
Easy to answer, we didn’t? Mohammad, while I don’t believe God spoke this enormous universe into being just for us, I do believe that when/if they get here, it won’t be pretty. Every group of explorers that found another civilization , sought to subjugate them. Only the liberals in their fairy tale world believe that aliens will come in peace. If you buy this, I have some beach front property in Ohio for sale. It’s a real deal.

Mohammad. This sounds like something from coasttocoastam.com . I do believe there will come a kind, loving, gentle leader that will show the power to fix most of the worlds problems, even to the point many will call him or her God. After he has established his economy mark of the beast the first 3.5 years then 3.5 years tribulation like the world has never seen. when the lord God returns all will know he is God. Aliens are to me the same as demons. I don’t seek them, Nor do I fear them.

Galaxy 500 I do believe both exist. However demons/ fallen angels are the principalities of this world. Gods angels have orders to control them only when given at this age.
eph 6 12 For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.
The antichrist show themselves as angels of light before there deep dark secrets are revealed.

One of the reasons ag land has skyrocketed is because of low interest rates and high commodity prices. I believe we have seen the top in ag land prices. The ag economy has been extremely strong and has supported the Midwestern economy. The down turn in the ag economy will be an additional drain on the economy as a whole. In the past, the ag economy and economy as a whole have generally operated as an inverse of on another, but because there is so much manipulation going on all bets are off as to what the future could hold.

Mohammad,
Being the physician that you are…you may be interested in what this gentleman has to say about the alien / ufo issue given your initial and subsequent posts.http://www.youtube.com/watch?v=eW7Rm2rFW8Y&list=PLy1nKTFR9F_vBkYZVCnYTH_qb8sOLM7TJ
Go to ~25.45 mins that’s where he starts his mind blowing dissemination of information.
Around the 48.50 mark is where the bullseye is hit. Black budgets, TNC’s, unlimited energy…..evidence of the sad world in which we live. This 30 mins…. pieces everything together very eloquently. Doesn’t explain everything but it makes sense of a lot of the misinformation we are fed……and of the power struggles inside/out the ruling powers.

I have seen the whole video and it is interesting that Greer is a physician who is devoted now to this kind of thing.
Please keep in mind that this free energy possibility that will make our lives better is at the same time a planet busting potential weapons that make Hydrogen bombs look like fire crackers according to what Dr. Joseph Farrell says, secrecy here is a virtue and not a vice as long as this tech is in the good hands.
I do not want average Joe to get a grasp of this technology since it may destroy us FASTER.
Another thing to keep in mind that even those videos that are supposed to inform us, those leaks from top officials like the recent one from the ex defense minister of Canada that is supposed to inform us is only a CONTROLLED LEAKED INFO that is conditioning us to accept a reality that will be exposed fully when time is right and likely after the financial collapse commences!!
We will be conditioned to accept a world government that is ALIEN HUMAN hybrid where we have no choice to fight or oppose! (or at least that what they will lead us to believe ) I put links to anti gravity from the 40’s.
This step is no coincidence to happen at the peak of the financial deterioration and it is in crescendo now with “SNOWDEN LEAKS” (It happened for me to believe it is controlled….call me crazy but this is how i see it) about aliens, collaborated with the canadian ex defense minister and published in HAARTZ!!
A lot of mind control is going on including the internet, (DO YOU THINK FOR A SECOND THAT ELITES DO NOT HAVE A KILL SWITCH TO THE NET?!)

Thanks again for having Fabian on again.
One thing that is over looked in the recent housing “recovery” is its been based on low inventory, low sales volume and higher prices.

This dynamic is because of :

-a large amount of underwater mortgages (its 20-25%, not 50%) holding back those homes from coming to market
-existing home owners that are not selling hoping for higher prices
-bank owned foreclosures not being brought to market because they are allowed to hold them on their books not marked to market -so they don’t sell these homes and take the losses
-new homebuilding activity 2-3X less than it was in 2003-2006
Match low inventory against artificially fueled QE demand from investors and prices rise.
Here is a full analysis of the false housing recovery of 2013 http://smaulgld.com/the-false-housing-recovery-of-2013-and-how-it-unraveled/

When I paid off the mortgage to our house I asked the Banker person what has been their biggest loan movements lately. The person said home equity loans. That surprised me because I was thinking new business startups or agriculture.

Thomas Jefferson’s Warning
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation,
the banks and corporations that will
grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

America and Canada you ignored the warning to your peril and now you are finished.
Your monetary foolishness and unlimited greed in respect to real estate prices has priced your young people out of the country their forefathers conquered and the existance of the next generation is now a matter of pure chance. In fact its existance will be an accident.

Some clarification from my comment above re percentage of homes underwater. It depends on how one calculates it:

Negative equity in homes in the third quarter 2013 with underwater mortgages – 21%

33% of homes in the U.S. are owned outright without a mortgage. Of those 14% had negative equity in their homes in the third quarter -so we can add another 4-5% to the 21% of the underwater homes with mortgages bringing the total percentage of homes with negative equity about 25%

You can also consider a homeowner to have negative equity where the loan to value ratio is more than 80%. If you use this criteria- 39% of homeowners were in this circumstance in the third quarter of 2013*.

*n.b. many of these are not technically underwater but have little home equity such that they can’t sell and have enough in proceeds from the sale to buy another home.

Hansen,
Yes I do and in his first interview on USAWatchdog.com he talked about that. It is totally false story and put Mr. Calvo in a false light. Mr. Calvo is in the process of suing the publication. By the way, every company Mr. Calvo has an “A” rating according to him.
Greg

Greg
Fabian Calvo is one of my favorite guest that you have come on your site regularly. His strategies are for the most part, very accurate. Having said that, I must respectfully disagree with his timetable for collapse. Greg I have a real estate investment company. I spend hours everyday going through public civil court records looking for distressed properties to buy. Greg you cannot even begin to imagine the numbers of people who are delinquent on credit card bills, taxes , mortgages, you name it. The stress of this stagnant economy goes much deeper than most people realize. I would wager a vast majority of people who aren’t living off the government , are living off borrowed equity from their homes, or credit card debt. I just cant see this going on for much longer.

I think we can all agree that the markets are being manipulated in one way or another. I had an Ah Ha moment the other day. I have been wondering why the price of Gold was so low, when it there is such a big demand? Then it occurred to me, that the power brokers who control the markets want it low, so they can fill up their vaults and be in a position of power when the reset comes. I think Rob Kirby was spot on. Once they have drained all the Gold available, I think they will be draining the Banks next with Bail ins. If Jim Willie is correct, that there is no Gold available for sale, then the reset is going to take place much earlier than most people expect.

Like I said, we can all agree, that the markets are being manipulated to prop up the economy now with QE printing. Some would argue that it is still a matter of opinion. Really? Well check out this out. Markets may be manipulated , but power usage can’t be. New method of predicting. Same result.http://youtu.be/wx87Hv2WdwY

Jerry THANK YOU for commenting; I do a lot of foreclosure work and debotr defense. As I pull back the layers of their finance and I see the real picture of this deep deep debt we all seem to be in. I am shocked at how far it goes. I used to wonder if there was something I was missing b/c I keep hearing recovery, money, prosperity etc. Its just not there. But I had my doubts…

I used to ask myself maybe I am wrong maybe I am missing something. Your comment again solidifies my instincts; that we are doomed. There is no way out of this. I am convinced Decembers employment numbers signify this event. But I bet they make up for it in January…the psychopaths. You convinced me that I am right about what I feel. I believ that 95% of what we will be hearing from here on out is a lie, but sometimes even the liars slip up and let out the real numbers. Thank you for this comment!!!

Thank you WD Deni.
I only cover one small county in my state looking for investments. It usually takes me three days to go through just one month of civil court filings I can’t even begin to imagine what the larger metropolitan counties would look like. America is up to its ears in debt.

I call it drum beat getting louder, for yahoo to use that language was a surprise to me but tells me the sentiment is pro war even if the surface is showing peace.
All will be decided when Assad is announcing his new term candidacy for a president to Syria to the dismay and humiliation of the whole west, then hell breaks loose, mid 2014 that is!

So, basically, you’d be crazy to be buy a house now. Rent and wait is what he seems to be saying.

I still think that a lot of these financial stories are geared to those who already have money and are thinking about ways to invest it. However, there’s a huge mass of people who have no savings, very little money and are literally depending on their jobs for their livelihoods. i.e. they are one pay check away from being poor. What is the solution for those people? short of storing food and those kinds of things. Do they have a chance to achieve financial security in their lifetime and if so, how?

nm,
I simply do not know what to say. I run a lean ship here. I do a lot of work myself and save all I can. I do not have a smart phone with a data package. I drive a care with a title (old car) I use coupons every chance I can. People just need to find a way to help themselves and if that includes giving up weekends and taking a second job then they should do that. What is happening is going to be a be very difficult road. I am shedding light on the road. No do not buy a house yet. and I will be talking more on Bitcoins in the future.

Greg,
I am encouraged to readers that you walk your talk concerning money. Most people do not understand the value of reducing expenditures. It is the same as cash. In our home we both take responsibility, each with our own skill set, being self reliant as much as possible. There are those who express that time is wasted on doing things yourself, considering a part time job to be more efficient. They are not doing their math, nor to they realize the health benefits of doing and making.

YOUR DEAD ON, We coupon, buy sales, We have no cable, we all share on internet conn. we buy ahead on EVERYTHING, but, we have been doing it a loooooong time, this “getting ready”, we didnt just start. We saw the light 10 yrs ago, been prepping ‘fast and furious’

Greg,
The point he made is very valid and I see it this way (JMHO)
If you are on limited paycheck to pay check income get benefit from the loose mortgage checking procedure and low (relatively since it is ticking up slowly) fixed interest rate and buy sooner than later. Keep in mind it is not an investment and you will find your house price going down. It is a given that rates for rentals will hike the more people cannot afford buying and you may find your self in a situation where you cannot even rent!
If you have the doe, wait until mortgage rate is 20% or more and buy it cash.

WD Deni,
I frankly do not know but the idea that it is some sort of anonymous payment is absurd. If it is on the Internet it can be tracked by the NSA. If you know what you are doing, you might want to trade it, but as a store of wealth–no way.
Greg

We call it frugal here at our home. I know it may be considered old fashioned, but I don’t even have a cell phone – don’t really need one. I am convinced that most people don’t need one, but they think that they do.

Both cars are 12 years old, bought used, 210k miles on one and 225k miles on the other – saved and paid cash for them. No consumer credit – we don’t buy anything unless we pay cash. Buy most of our items used. We repair our items our self. ETC.

A penny saved is still better than a penny earned – no tax on the saved penny.

The stories sound almost the same, Rich.
We are frugal by necessity. Yes, we could get a credit card and spend, spend, spend — but we have chosen not to. We have chosen not have a cell phone(s) or cable TV. Both our vehicles are old, both bought used. We pay cash for everything we purchase, but we purchase little for we have little cash.
The ever-tightening economic times have compelled us to learn how to be even more frugal.
I live in a cold winter state up north. It was -18°F this morning. During the “polar vortex” that got all the MSM headlines, the lows were dropping to -33 and never even touching to teens below zero during the “heat” of the day.
To save electrical costs, I hang my washing on the clothesline in the summer. But this winter I bought a drying rack and dry all my clothes inside on it. Very seldom turn on my electric dryer anymore.
We went back to the old ways my husband was accustomed to growing up on the family dairy farm: wear your clothes for more than one day to save on wash and wear.
The old farm houses still standing around here from bygone days, have what today’s young folks would think as funny closets. The closets have three hooks in them. One hook was for their good outfit that they wore to church or to go uptown to shop. (Oldtimers took pride in their appearance when they made their monthly wagon-ride into town to shop.) The second hook was for an everyday outfit and the third hook for that other everyday outfit that was worn when the first outfit was being washed. Bath was one time a week (for church on Sunday), whether you needed it or not.
The oldtimers could teach us a lot about being frugal. 🙂

Now, there is word that the legislature is considering two bills. One would put a water meter on your lawn pump which we use for growing crops and charge you a water and sewer bill for water usage and drainage. The other is imposing a “user tax” for solar panels.

This could result in a $150.00 tax a month on us. That is an extra $1800.00 a year tax on our household.

Right now it is flying under the radar, but when the legislature decides to implement we “freeriders” (the pejorative of choice) will be demonized by the corporate media for a frugal lifestyle.

I don’t care what party is in charge. We have a republican governor and legislature. If they think you have one extra dollar, they are coming for it.

NM
you raise an important point. Most of the MSM opinion makers are doing fine and it colors their opinion. Perhaps they believe the “recovery” stories that they report on because for them their wealth lost in 2008 has returned. Bitcoin presents an extremely speculative investment and when banks pay less than a half a percentage in interest a year on deposits we see money flowing to all sorts of things that would probably not attract much capital but for the lack of any other sound alternative.

Greg, I love watching your show and follow it daily. The bottom line is your guess are white collar guys making educated predictions about the Econmy. Only a few people know the exact date of the collapse. No need to keep a death watch on the collapse. If you are looking for a date for the collapse i will give you a hint*** Iran War*** The war is coming shortly,I( i dont know exact date ) and until then the money printing and dow will keep climbing. stock up on gold and silver and sit back wait for the war in the mean time go have fun play some golf or relax on the beach. I would love for you to do a interview on the beach. Keep up the great job

Iran.
There will be many who will have to look at their starving children with shame, because they didn’t do anything to prepare for what is coming. Eating, drinking, and making merry on the beach doesn’t feed the bulldog, or a starving family. Can all of the experts Greg has on this site be wrong? Even if they were 50% right, its still going to be bad at the end of the day. Use this time now. Its all you’ve got.

Mark Levin opened his show today livid over Obama’s announcement that he will ignore the legislature and use his pen to write executive orders. He says the separation of powers are the key to our Republic and yet today Obama just announced that he would assume lawmaking powers via executive orders.

Mark Levin says what’s going on here is that we are witnessing a gradual, quiet coup:

He’s just announced that he is going to assume lawmaking powers. He does not recognize the majority in the House of Representatives. I don’t know how much more clearly he can say it. You know what this is folks? This is a gradual, quiet coup. That’s what is taking place. It’s gradual. It’s quiet, in the sense that it’s non-violent. But it’s a coup!

THE OBAMAINATOR IS BACK, ANNOUNCING, HIS DICTATORSHIP, WE MUST SOOON CALL HIM “THE DEAR ONE”. al ols

He has just announced that he is going to assume lawmaking powers and he does not recognize the majority in the house of representatives… “One of the things I’ll be emphasizing in this meeting is that fact that we are not just gonna be waiting for legislation in order to make sure that we’re providing Americans the kind of help that they need. I’ve got a pen…and I can use that pen to sign executive orders, and take executive actions and administrative actions that move the ball forward.” -Barack Hussein Obama, before a cabinet meeting, JAN-2014 I don’t know how much more clearly he can say it… You know what this is folks? This is a gradual, quiet, coup. That’s what’s taking place. “One of the things that I’m going to be talking to my cabinet about is how do we use all the tools available to us – not just legislation, in order to advance a mission that I think unifies all Americans.” -Barack Hussein Obama, before a cabinet meeting, JAN-2014 This is the common parlance of the dictator. Mark Levin recently said about Obama’s mindset: “Assuming that he represents all Americans; that he’s a unifying figure; that we just need to concentrate more power in his hands; he will decide what laws are good or bad; he will use executive orders to pass laws that Congress won’t pass; he will ignore laws he doesn’t like; and he’ll rewrite laws that he wants to rewrite…” This is the mindset and the language that dictators have. He assumes to speak for everybody and the he’s above politics. And yet when you go back to the founders of the Constitution, they say this is tyranny. I say you are witnessing a gradual, yet quiet – coup.

allen ols.
I have been watching this news with great interest. To me its a gradual setup for martial law. The American people are being tested to see how much central power they are willing to accept. First the Drones, The NSA, and now this.

[quote]
“Three members of the Russian security forces and four gunmen were killed in a shootout on Wednesday during a sweep for Islamist militants who have threatened to attack the Winter Olympics that begin in Sochi next month.”

I agree with Fabian. A house is a home. A house should be treated like a liability, or a necessary expenditure if you still have a job and a family that needs a home . The recent housing bubble was not only disruptive to the economy, but it also screwed up the minds of Americans where houses were considered ATM’s and slot machines— as trading houses and buying lottery tickets were the last opportunities for achieving the American dream. Our social values became even more screwed up than they already were, just like in other examples of monetary inflation throughout history.
But things can get much more crazy with PRICES (especially those of necessities) because of all the massive inflation in the money supply. It’s just a matter of when the money velocity drastically changes, which depends on the mass psychology of those crowds living here and abroad.
That’s why real estate may still fare better than cash and bank accounts, and definitely better than bonds which are long-term claims on receiving cash payments. If the dollar evaporates in value in a very short period of time, then any REAL THING will be much better than cash or digital dollar accounts.
Commercial real estate should be shunned as the American economy will probably never recover for a very long time. Residential real estate cannot do well for the same reason, as consumers will be lucky to have jobs and they still won’t be able to accumulate enough dollars despite all the money being printed by the Fed. When our big banks finally let loose of all their dollars along with those of foreigners, then we can expect people at that time to have plenty of worthless dollars.
I expect farm property to do much better as food and energy will be some of the only industries that still provide necessities for living. But I must say that farming isn’t swimming in vast pools of net profitability at the moment as our input costs for farming have increased so steadily and unrelentingly.
I prefer to own silver, necessities, gold, farmland, and mining stocks, in that order. But really, with all the insanity that is going on, I think that Richard Russell nailed it perfectly just yesterday. When asked, what he expected America to be in a decade? Russell replied, “… within a decade we will hopefully just have America.”

thought you would like this
How this guy can escape IMPEACHMENT is beyond my understanding!! Bob: “Did you hear about the Obamar administration scandal? Jim: “You mean the Mexican gun running?” Bob: “No, the other one.” Jim: “You mean SEAL Team 6?” Bob: “No, the other one.” Jim: “You mean the State Dept. lying about Benghazi?” Bob: “No, the other one.” Jim: “You mean voter fraud?” Bob: “No, the other one.” Jim: “You mean the military not getting their votes counted?” Bob: “No, the other one.” Jim: “The NSA monitoring our phone calls, emails and everything else?” Bob: “No, the other one.” Jim: “You mean the drones in our own country without the benefit of the law?” Bob: “No, the other one.” Jim: “Giving 123 Technologies $300 Million and right after it declared bankruptcy and was sold to the Chinese?” Bob: “No, the other one.” Jim: “You mean the president arming the Muslim Brotherhood?” Bob: “No the other one.” Jim: “The IRS targeting conservatives?” Bob: “No, the other one.” Jim: “The DOJ spying on the press?” Bob: “No, the other one.” Jim: “Sebelius shaking down health insurance executives?” Bob: “No, the other one.” Jim: “Giving SOLYNDRA $500 MILLION DOLLARS and 3 months later they declared bankruptcy and then the Chinese bought it?” Bob: “No, the other one.” Jim: “The president’s ordering the release of nearly 10,000 illegal immigrants from jails and prisons, and falsely blaming the sequester?” Bob: “No, the other one.” Jim: “The president’s threat to impose gun control by Executive Order in order to bypass Congress?” Bob: “No, the other one.” Jim: “The president’s repeated violation of the law requiring him to submit a budget no later than the first Monday in February?” Bob: “No, the other one.” Jim: “The 2012 vote where 115% of all registered voters in some counties voted 100% for Obama?” Bob: “No, the other one.” Jim: “The president’s unconstitutional recess appointments in an attempt to circumvent the Senate’s advise-and-consent role?” Bob: “No, the other one.” Jim: “The State Department interfering with an Inspector General investigation on departmental sexual misconduct?” Bob: “No, the other one.” Jim: “Clinton, the IRS, Clapper and Holder all lying to Congress?” Bob: “No, the other one.” Jim: “I give up! … Oh wait, I think I got it! You mean the $634+ million in a non-compete contract for Healthcare.gov to a long time Obama contributor who was fired by Canada for failure to meet contract obligations. Bob: “THAT’S THE ONE!”.

The FED trying to inflate in order to create the “wealth effect” ?
The Answer is a resounding NO. Why would the FED want the general public to share in the greatest shift of wealth that we have/will have witnessed worldwide. This is all about what Calvo alludes to in “pump and dump” theory, where the great con artists have created false economics. Bubbles in assets are a misallocation of capital. HF and Banks are going after real estate because it represents collateral. Physical assets are better than worthless fiat paper. Q: How long can they hold these foreclosed properties on their books without taking a “Mark to Market” hit ? A: How long has the FED held all that worthless MBS crap on its books !

Printing fiat gives the BANKS free capital and yield(on the margin when playing the treasury dealing game) . It gives them the ability to re-acquire real estate for pennies in the dollar. Loans to non-qualifying individuals is senseless. MBS (on rental) 2013-14….. is 2007-2008 repeated. If securitisation of rentals is true…WHO IS BUYING THESE FRAUDULENT PACKAGED PAPERS & WHO IS RATING THEM ???? Its one thing for them to be securitised and another for a Pension/Sovereign/State/ County Fund to be buying them ….don’t ya think !!! One could assume that these foreclosed properties are at rock bottom prices….and that the potential for re-inflated real estate prices is enormous. One could also be making a very bad assumption about value too and also that a turnaround in real estate is a foregone conclusion….hmmmmmm!!

Calvo is actively involved in the process too….$100MLN ……!!! and yet he wilfully brings our attention to the enormous issues whilst making a few warnings to boot. Sounds like the real estate market as Calvo described, is quickly becoming a “trade” rather than “invest”. Guess there is opportunities for making money in almost any market…as the saying goes….without scruples.

A final point he made which has escaped most (if not all) comments so far…about the inclination of the “Smart” money to buy into physical PM’s. That right there is a key sign. When the avalanche starts …its usually very slow. More than 10-15 % allocation is 15 TIMES more than where they were a year or two ago. It doesn’t mean they are all right. It does however require due respect. They are not collectively called smart money for a reason. A physical supply constraint would be an interesting proposition here. If demand escalates we have a very real probability for non delivery/availability of physical metal…AT ANY PRICE. This smells awfully like some shorts getting burned …..BIG TIME.

Liquid motion
Here is a link from 2009 explaining the FASB mark to market “Alice in Wonderland” accounting rules that allow banks to hide the garbage mortgages on their balance sheets. This rule along with the Fed buying garbage mortgage back securities from the too big to fail banks with money they print out do thin air ensures the banks stay afloat, look like they are solvent and make massive profits.

Standards are only applicable to those who cannot escape the rule of law.
FA Standards are rules of law. When the FED and the Banks are not required to adhere to the Rules of Law, then they must be considered to be above the law. This is a blatant lawlessness. Enough said… :-X

WHO IS BUYING THESE FRAUDULENT PACKAGED PAPERS & WHO IS RATING THEM ????

Liquid Motion.
I have been to many estate sales and real estate auctions. You will always find a representative from a Bank at these sales almost all the time. In many cases you will find Banks buying an entire block of foreclosure business and either renting it out, or doing a fix and flip.

Thanks Jerry.
Notwithstanding the opportunistic bunch that will scour around the globe looking for morsels, I am more concerned about the bundling up of these MBS as they did in the sub-prime securitisation and selling off as AAA.

I think most people have bought or built homes based on a want rather than a need including my self. As a society in general we are living based on wants and it has been easily to obtain by easy access to credit/and putting ourselves in debt. Today I look at every purchase: IS IT A WANT OR A NEED??????

Greg keep up the excellent work, You will never know the impact you/your website has had on those who visit it. Thanks !!!!!!!!!!!!!!!

Troy it was 20* last night in Nashville Tn. My wonderful fireplace kept me around 80* all night. Everyone not in Hawaii should have the ability to burn some wood for heat. Just got more water filters in today…Life is good!

I once emailed Jim Sinclair to ask his opinion whether those changes are pro war or against war he opted for the latter.
I wish if someone can shed a light on the issue, may be Karen Hudes or Catherine fits you can interview soon?

Never mind, I thought that I should not put a reference to a private email without asking the other person, however it is a broad term info so if it is ok with you keep the post please and erase those two.

it is ok for sending gays to the olympics who openly say it and admit it, but god forbid writing your constitution “WE THE PEOPLE” on your helmet as a hockey olympic goalie … OH NO…. THAT IS A MAJOR CRIME ….. you have to remove it or else…!

Here is a little real world reporting:
I just finished filing our income tax return.
I noticed that my spouse’s taxable income, which is our family’s primary income, dropped $4,000 from last year to this. The reason is the increase in health insurance premiums in 2013. The good old Affordable Health Care Act requires employers to list the total amount paid by both employer and employee for health insurance premiums. The total is $15,186, most of which is paid by my spouse — including the $4000 increase in 2013. That was $333 less a month brought home to pay the bills and meet living expenses.
Here’s a bit of irony: My spouse did not receive a pay increase last year, instead their union bargained for the employer to pay more on the health insurance premium. It was a lose-lose situation anyway you figure.
That $15,ooo+ gets one health insurance coverage with a $5000 deductible.
Are we not glad that the federal government is working to fix the problem?

Broke,
You have highlighted in real terms, why I say the Democrats are going to have a very hard time in the 2014 Mid-term elections. Thank you for the real world reporting and for sharing your story here!
Greg

I disagree on the fog a mirror comment. While not impossible, it is still difficult to get an individual mortgage with 3% to even 50% down. If you do not meet guidelines, there is little to no exceptions made for loan approval. Now if he is talking about investors with huge lines of credit like a Blackstone Group, well that is a completely different animal. Those entities however have huge balance sheets to secure their debt. This guy is a nut as housing and land are like gold in the sense they are tangible assets and they will never go to zero. The only thing that makes me consider housing as too hot is that we had near 12% appreciation last year. That is not sustainable as incomes certainly did not increase that much of at all. The secularization of the rental cash flows will not be enough to bail out the loss on the properties if they are just willing to dump the physical asset or property. Who is buying the property when nobody is in the market or qualifies to bail them out? He manages 100 Million. The guys managing these funds laugh about the last 100 Million they lost while they take a crap. Blogs and online videos of guys wearing a tie and a suit coat who are billowing their BS opinions while still wearing their Star Wars PJ bottoms make me laugh! This was a good one, very funny!
If this guy is the new Messiah, time to really start building the shelter.

Agree with your comment about the ‘$100 million’ part. It is true. That said, I would pay more attention to the interview with Rob Kirby (Greg, you need to have Rob Kirby on your program as a ‘regular guest’, much the same as your existing rotation), regarding the underlying factors that are ‘fueling’ and/or Controlling this market… And that is outright manipulation and control of interest rates and interest rate policy, by way of Forward Interest Rate agreements among the largest banks, and Interest Rate Derivative Swaps, which in turn, dictate the sustainability and/or small deviations in chronically and questionably, Low Interest rates.

I realize that’s a mouthful, but the fact of the matter is, the ‘housing market’ – in the context of our current economic environment of easy money, is a construct of artificially low interest rates, in combination with an apparatus that has the ability to ‘manage’ the environment – again, ‘artificially’.

Which is to say in simple terms: If current interest rates were allowed to find their natural ‘watermark’, there would be NO housing recovery At All. In fact, there would be an Un-Mitigated housing Catastrophe in the making, replete with all of the known downstream economic repercussions in tow.

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Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin.

USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.